The Chinese government has made it clear that it is eager to assist Ghana in obtaining the IMF bailout for its balance of payments (IMF).
The Chinese government asserts that it has a responsibility to prevent the collapse of the Ghanaian economy.
According to Mr. Liu Kun, the Chinese Finance Minister.
Mr. Kun cited their faith in Ghana’s long-term economic prospects as the reason for this.
“We know that these are short-term challenges which we as responsible creditors remain committed to resolving.
The long-standing and prosperous relationship between Ghana and China imposes on us, a responsibility to help”.
“Chinese authorities have confidence in Ghana’s economic management and its long-term economic viability.”
“China believes in promoting debt sustainability and sustainable development” Mr Kun stated.
When Ghana’s Finance Minister, Ken Ofori-Atta, led a delegation to negotiate with China about a $1.7 billion debt, Mr. Liu Kun made the remarks.
Technical Authorities from the Bank of Ghana, the Ministry of Foreign Affairs, and the Ministry of Finance make up the Ghana delegation.
Mr. Ofori-Atta talked about pursuing financial assurances for Ghana’s program with the IMF as well as bilateral discussions on debt restructuring with China.
The engagement’s goal is to maintain that the matter will be discussed, not to cancel any debt.
Talks with the Chinese government over the nation’s debt restructuring scheme, according to Mr. Ofori-Atta, have gone well.
He claims that China will soon provide Ghana with external assurances.
On Friday, March 24, Mr. Ofori-Atta tweeted his confidence that the administration will pass the three new tax legislation in Parliament.
The investment banker continued by saying that the government has made great strides toward reaching an agreement with the International Monetary Fund (IMF).
Three income laws that the government needs for an agreement with the IMF have to be approved by the parliament.
The legislation include the Growth and Sustainability Amendment Bill, the Excise Duty Amendment Bill, and the Income Tax Amendment Bill, and they are all projected to bring in roughly GH4 billion a year.
The government claims that negotiations with the Paris Club have made some considerable progress.
A third of Ghana’s $5.7 billion in foreign debt, or $1.7 billion, is held by China, which Ghana is attempting to restructure.
The total amount owed by Ghana to its foreign creditors is estimated to be $29.2 billion.
According to the external debt structure, Ghana owes China 1.7 billion dollars. 13.1 billion dollars are spent on eurobonds, while 8.1 billion dollars are spent on multilateral.
The remaining amounts are made up of Paris Club Countries ($1.9 billion) and other creditors ($3.2 billion).